Soa4 bt 02042015_final

© Copyright 2015 Applied Technology Solutions,Inc.
>ApTSi TM – Applying Technology to Solve Business ProblemsTM
The Open Group Conference, San Diego February 2015
1
>Applied Technology Solutions, Inc.(ApTSiTM)
SOA For Business Technology (SOA4BT)
The Open Group Conference, San Diego 2015
ApTSi TM SOA, Cloud and Business Technology
ApTSi
TM
Applied Technology Solutions, Inc.

• February, 2015
• Name Title
• Nikhil Kumar President & CEO
Co-Chair SOA Reference Architecture Project,
The Open Group
• Sundar Ramanathan Manager, IT Advisory
Project Chair SOA4BT Project,
The Open Group
ApTSi
TM
• Leadership
• World Class
Technology
• Experience
• Strategy
• Integration & SOA
• Application
Development &
Reuse
• DB, EII & BI
Nikhil Kumar President
Email: nikhil@ap-tech-solns.com
Blog: http://blogs.ittoolbox.com/emergingtech/nikhil
Phone: (248) 797 8143
Introductions
2
Sundar Ramanthan Manager
Email: sundararajan.ramanathan@ey.com
Blog http://sundarar1.wordpress.com
Phone: (734) 272-2040

• Overview
• SOA4BT – the 3 pillars
• SOA4BT – from pillar to execution
• Success Factors
• An example – the Acme Healthcare company
• What’s Next
• Discussion
• Supporting Materials
– The IT Perspective of Service Orientation
Agenda
3

Business Ecosystem
4
Business Adoption and Impact of Service Orientation
A world of SOAs
Low HighIncreasing
… “Service
Orientation” is a
strategic business
PRIORITY
As organizations evolve into Service Oriented Enterprises, Business and
IT Management are jointly engaged in the creation of an evolving
coalesced paradigm of Business Technology
Modern SOA
Ecosystem
Legacy APIs
(CORBA/DCOM)
EAI
Enterprise SOA
Cloud Computing
Micro Service
Architectures/ APIs &
IOT

5
Overview: Some background
n Modern business environments have evolved into a ecosystems of SOAs –
internal (traditional or legacy), external or partner ecosystems
‒ These ecosystems often now include the cloud as one of the components
n Cost, agility, regulatory and market drivers are transitioning organizations
into Service Oriented Enterprises
‒ The ability for SOAs to enable agility are existential capabilities in the modern business
environment
n This presentation is about what makes a Service Oriented Enterprise and
the journey. We provide some foundational concepts and then walk through
an illustrative example.
n An Enterprise SOA can be thought of as Business Technology (the Service
Orientation of Business) and the Technical SOA together
Service Oriented Enterprises are becoming the norm. Organizations
have aligned structures on service models and the realization of its
impact is becoming more ingrained in business execution.

• Service Orientation and the Business
– Strategy, Operating Models, Operations
• SOA4BT – a Business Perspective of SOA
– An overview of the Business Aspect of the SOA4BT Reference Model and the 3 pillars
• SOA4BT – Application to realizing SOAs
– Where the 3 pillars map to execution
• Using it
– The practical implications – for business and IT alike
• Success Factors
• Application Example
– The application of SOA4BT in the Healthcare Sector
What You Will Learn
6
Overview: So what you will learn…

• Business Executives and Management
– Talking SOA to the Board
– Talking to Line-Managers and Mid-Level executives
• IT Executives and Implementation
– How do I apply this to reflect business value?
• Enterprise Architecture
– How do I handle this new ecosystem?
What’s in it for me?!
7
The coalescing of SOA and Business requires stakeholders from both IT
and the business to think Service Oriented. This presentation should
provide an introduction what is involved.
Overview: So what’s in it for me?

8
Some quick terms….
‒ Business Services – services that an organization considers its delivered services. The
organization measures itself in terms of metrics related to these services or consolidated
metrics. Business Capabilities are composed of Business Services
‒ Business Functions – the operational functions which keep the organization running.
Business Functions are composed of Business Processes.
‒ E.g. Provider Servicing with processes for claims submission, claims inquiry, etc.
‒ Business Process – Processes that define the behavior from the ‘How’ (how work is done)
perspective.
‒ A Service Oriented Enterprise is an organization that orients itself in a Service Oriented
manner, with the following characteristics
§ It defines Business Capabilities in terms of Business Services
§ Business Functions in terms of Business Processes
§ It measures Business KPIs to determine success
Business Services are what the organization provides. Business Functions
are what it does in order to provide Business Services. Business Processes
are how business functions are done.
“Don't gobblefunk around with words.” .. Roald Dahl

• Overview
• Success Factors
• What’s Next
• Discussion
Agenda
9

A Reference Model for Business in the context of SOA
The Business Perspective
The 3 pillars of SOA4BT – Strategic, Operational and Operating Model
provide a framework for how Business adopts service orientation
10

• Strategic
– The Strategic Pillar addresses organizational strategy, orienting the organization around the
organizational mission, vision and goals.
• Operational
– The Operational Pillar addresses how an organizational executes. This includes the functions
and organizational structure to run the business. The underlying business processes and
services to run the business.
• Operating Model
– The Operating Model Pillar addresses the manner in which an organization is run. The structure
and culture of the organization are factored into this. It is a very effective tool in assessing
organizational readiness to adopt the SOA Ecosystem. Governance, culture and metrics are
key aspects of this.
A Reference Model for SOA in the context of SOA
A Service Oriented Enterprise measures how it operates. It uses
Business Services as a paradigm to determine how and what it does. It
uses a capability based Strategic Model to determine how it works and
an Operational Model to run the organization. It uses the Operating
Model to determine prioritization.
11

• Scorecards
– Rolled up to an enterprise level, typically aligned on a Kaplanesque model to reflect factors of
business importance (customer satisfaction, employee satisfaction, revenue, etc.)
– Business executive stakeholder understand and measure success based on these.
– They can be tactical and strategic
• KPIs and Metrics
– KPIs and metrics measurable attributes, typically at unit or program level, that can be rolled up to
the scorecards. They are often used to measure how an organization is aligning with its goals.
• Examples
– Common scorecard measures for a Healthcare organization may be patient safety and
satisfaction
– Common KPIs for a Healthcare organization may be raw mortality rate and patient
comorbidity rates
Businesses measure how they are doing..
Service Orientation is uniquely positioned as a business and technology
architectural style to capture and compose metrics, and measurability is
a key factor in modern businesses, especially due to its impact on
efficiency and agility
12

• Overview
• Success Factors
• What’s Next
• Discussion
Agenda
13

From Strategy to Execution
• Determine
Strategy and
Roadmap
• Define
Business Ops.
• Establish
Governance
Framework
Build the 3
Pillars and
Implement
Strategy
Pillar
• Business
Services/ Func/
Proc.
• Map
Capabilities
• Establish Org.
Structure
Implement
Operating
Model and
Operational
Pillars
• Determine
Capabilities
• Map to RA
• Define
Business
Process and
Service Catalog
Define SOA
• Capture and
Map KPIs
• Implement
Services and
Infrastructure
Implement
SOA
§ The reality is not a linear but an iterative, road-mapped process.
§ The 3 pillars form the framework for the Business to align against.
§ Business Functions, Services and Organization Structure accompanied by the KPIs and Governance Framework form a
framework through which the organization becomes “Service Oriented”.
§ The mapping of Capabilities to the SOA RA forms the point of integration. The TOG SOA RA and the OSIMM form the basis for a definition
of the technical components of the SOA infrastructure. Organizations tailor these based on identified capabilities to “Enterprise” SOAs.
§ Business Process and Service catalogs are mapped to enterprise Business Services, Functions and Processes. KPIs and metrics are
gathered to feedback to align with the Enterprise Strategy
SOA pervades the Service Oriented Enterprise.. Business
Technology melds the Business and SOA, while the Technical
SOA realizes it..

Business Technology – relationships in the model
Service Orientation provides a unique mechanism for low cost alignment
Business Strategy
Mission/ Vision/ Goal
Business Capabilities
Business Operations
Value Chain/Supply Chain
Business
Processes
TechnicalCapabilities
Business
Constraints
Service
Orchestrations
SOARA
SOASolution
Architectures
Service
Catalog
Activities +
Org.Struct.
Decision
Rights & Gov.
SOA
Governance
Execution
Capability and Portfolio based
Acombination of capabilities, constraints
drive decisions and help define Solution
Architectures
2
Organizations align delivery portfolios on
business and technical capabilities
1
SOA
Governance
ensures
consistency
and alignment
3
Business Operations add
Constraints
Governance
15

Business Technology to Implemented SOA
Service Orientation provides traceability – not for the sake of it, but for
the ease of being able to see the success or failure of it
Enterprise Strategic Business Architecture
Business
Mission &
Vision
Technology
Drivers
Business Drivers
Enterprise Mission
Vision and Goal
helps define
drivers
Business and Technology drivers help
define the guidelines and process for
the strategy
SOA integration with Enterprise Strategy
SOA RA
SOA Governance
decision process
Architectural
decisions
Maps to SOA governance and
architecture decision points
Traceability
BusinessArchitecture and
CapabilityMapping
TechnologyArchitecture
and CapabilityMapping
Balanced
Scorecard
Enterprise
Scorecard
providesmapping
Capability &
Portfolio Map
Capability &
Portfolio Map
SOA Solution
Architectures
16

• Overview
• Success Factors
• What’s Next
• Discussion
Agenda
17

• Get the Strategy Pillar Right
– Align Executive Management against Enterprise Strategy
• Get the Operational Pillar Right
– Get organizational alignment on the Services Provided by the organization.
• i.e. – determine the Business Services and associated KPIs
– Get the Business Functions Right
• Align Business Services and Organizational Structure – this is key to map in the KPIs are that are fundamental to SOEs
• Organization structure needs to reflect Business Functions. What the organization does (the Business Functions) in order to
support its services need to be expressed as “service units”.
– Get the Business Processes right – and refactor the capabilities
• Business Processes will form the basis of the instantiation and use of the technical SOA – so understanding them is important.
• Capabilities will include both those cross-cutting across business functions and those specific to a business function.
Understanding them is important to defining the right RA and Roadmap
• Get the Operating Model right
– Ensure that the organizational type is aligned against available Operating Models
– Establish a governance framework
Success Factors
Success Factors for Business Technology and an SOE
Moving to a Service Oriented Enterprise is a journey. Getting the
Business Technology right is critical.
18

• Map Strategy Capabilities to Technology SOA Capabilities
– The SOA RA provides a good candidate set
• Establish Service and Business Process Catalogs
– Use standards
• The SOA RA provides a high level Catalog
• One of the deliverables of the SOA4BT project is going to include candidate KPIs and Catalogs
– Industry bodies (AQPC, TOG, etc.) have line of business specific models/catalogs
– Get the information model right
– Plan to Iterate
• Determine the Implementation Architecture
– Use the SOA RA to determine the building blocks
– Map using the SOA RA’s metamodel to determine Solution Building Blocks
Success Factors
Aligning Business Technology to the Technical SOA
Moving to a Service Oriented Enterprise is a journey. Use the OSIMM
and the SOA RA to provide a Roadmap
19

• Remember!
– SOA RA is an enabler
– SOA OSIMM as a rubric
– SOA4BT involves both the Business Technology and the Technical Implementation
parts of the SOA
Success Factors
Success for a SOE
Moving to a Service Oriented Enterprise is a journey. However, modern
business drivers of cost, globalization and agility make this easier to
understand and justify
20

• Overview
• Success Factors
• Discussion
Agenda
21

Healthcare in an Individualized Healthcare World
22
The new world of healthcare is person-centric
Figure from Kumar and Limaye, SCDM 2014
OMICS
IOT, Social
Media
WellnessmHealth
Data
Analytics

Acme Healthcare Company
23
Regulatory and Compliance
The new world of healthcare is person-centric
A Person-Centric model based on seamless interoperability, regulatory
compliance and security are the cornerstones of modern healthcare
The Evolving Healthcare Ecosystem
is Person-Centric
Pharma
Companion
Dx
Payers
Providers
IDNs
PBM
Pharmacy
Patient
Healthcare IT
Media
Social
Media
Things (IOT)
Internet of
Things (IOT)
ONC Direct Connect
HIPAA Business Associate & Covered Entity
HIMMS & Continuaa introduce personal connected care
BRIDG
FHIM focus
Labs
Figure from Kumar and Limaye, SCDM 2014

24
Acme Healthcare Enterprises
n Is essentially a payer – that is evolving into the an IDN model
‒ The ability for SOAs to enable agility are existential capabilities in the modern business
environment
n It is being severely impacted by change
n In this example we are going to define the 3 pillars and map a portion of the
SOA
n Due to its nature ( a presentation) there will be a lot of brevity in the content
Service Oriented Enterprises are becoming the norm. Organizations
have aligned structures on service models and the realization of its
impact is becoming more ingrained in business execution.

Acme Healthcare Enterprise
25
Enterprise
Drivers
1. Quality
2. Agility
3. Cost
4. Innovation
5. Seamless
Partner
Integration
1. Legacy systems with application
silos
2. Plan as opposed to individual
centricity
3. Tight coupling
4. Technical debt with large
investment in legacy platforms
5. Limited organizational background
of Service Orientation
6. Absence of Master Data
Management and Data Quality
ability leading to “GIGO”
7. Intense market change &
competition with key players
migrating to new platforms
Legacy and Traditional
Constraints
Business Drivers
1. Ability to integrate with trading
partners
2. New payment models
3. Wellness Vs symptomatic
4. Evidence based Vs Fee-for-service
5. New players and competitive
operating environment
6. Staggering volume and cost increase
requiring cost-containment
7. Fluid and complex regulatory
environment
8. Need for common understanding of
information across the enterprise
9. Market Consolidation
Business Derived and New
Technical Drivers
1. Adoption of Service Orientation and
an API based architecture
2. Huge volumes of data
3. Diverse sources of data & rapidly
evolving formats (e.g. HIPAA 5010)
4. Complexity in available data –
structured, unstructured, fluid
relationships
5. Evolving business understanding
and use of data (adhoc to silo to
business vision)
6. Need for a common view and
understanding of data (e.g. clinical)
7. Cloud Computing and IOT
8. Individualized Healthcare Paradigm
Acme Business Technology and Technical SOA
1. Realigned organization against Services Provided (Service Unit model)
2. Defined KPIs – enterprise and service unit
3. Governance Framework and Operating Model Classification
4. Defined Business Strategy with Mission, Vision, Goal, Capability Map, Roadmap
and Capability based Portfolio
1. ESB & SOA Fabric
2. API Mgmt & Runtime Governance
3. ID Mgmt & Security Centralization
4. Monitoring and Event Based response

• Numerous legacy systems all based on the same model
• Government regulation driving a transition from a symptomatic to a wellness
model
• Regulation rapidly changing
• Security constraints in flux
• Data not available or aligned at an individual level
• Payment shifting from encounter to episode of care
• Payment shifting from fee for service to evidence based
• Business Organization in silos based on the Plan/Member/Employer model
– Largest unit is National Acme Retail Corporation based on employer of same name and has
maximum revenue
... The list goes on...
Where Acme is..
The Journey - the Strategy
Acme Organization has to change its Business Technology first..
26

• Strategy Pillar
– Scorecards
• Financials driven by cost and revenue rolled up based on organizational unit silos
– KPIs and Metrics
• KPIs based on Employers, as organization is modeled on a Plan/Member/Employer model
– Mission, Vision and Goals
• All need updating
– Roadmap and Capability
• No Roadmap
• No Capability Based Model
– Roadmap and Capability
• No Roadmap
• No Capability Based Model
Where Acme is..
27

• Operational Pillar
– Business Organization in silos based on the Plan/Member/Employer model
• Largest unit is National Acme Retail Corporation based on employer of same name and has maximum revenue
– Operational Functions apart from Back Office not defined
– Decisions not data based
– Business Process Models defined – at a silo level
Where Acme is..
28

• Operating Model Pillar
– Falls into Diversification Model
• This model will not work with modern drivers
– Governance Framework
• Defined to meet regulatory criteria
– Decision Rights defined – to meet regulatory criteria and enforce the Diversification
Model
Where Acme is..
29

• Scorecards
– Financials driven by cost and revenue rolled up based on service unit silos
– ALSO patient safety and satisfaction;
– incorporate required standards such as STAR and HEDIS
– KPIs need to be realigned based on regulatory constraints AND a new Business Service Unit
based organizational model
• Capabilities!!!
– Roadmap defined on Business and Technical Capabilities and Business Services
• Ability to view and capture individualized profiles across the patients lifetime
– Capability Catalog (both Business and Technical)
• E.g. Near Real Time Provider Clinical Engagement; Member Identification Service
– Capability based Portfolio
• E.g. Develop Person Data View; Generate STAR profile,; integration into local HIE
The Strategy Pillar first...
The Journey - Changing the BT
30

• Business Services, Functions and Processes
– Define what the enterprise does – in terms of services offered
• E.g. Provider and Network Management (Service)
– Define the Business Functions in terms of Functions
• E.g. Provider Credentialing
• E.g. Generate Provider Profile
– Define the Business Processes
• E.g. Generate Provider Profile
– KPIs for each Business Service Unit
• E.g. Patient Credentialing quality of service metrics
The Operational Pillar...
31

• Operating Model Change
– Transition into a Unified Model as that is a better fit for the new market environment
• Organizational Structure
– Convert Business Services into Service Units
• Governance Framework
– Leverage COBIT and the SOA Governance Framework to define an appropriate governance
framework
– Decision rights in terms of Business Services and cross-unit capability execution
The Operating Model Pillar...
32

• Map the technical (and business) capabilities to the SOA RA
– E.g. – new ESB
– Use the SOA RA Metamodel to define the Solution Building Blocks
• E.g. Acme Service Bus
• Define the operational SOA RA
– Define the Business Process Catalog
• E.g. Generate Demographic Profile Business Process (this may be decomposed from the BT Business Process)
– Define the Business Service Catalog
• Determine the Service Categories
• Determine cross domain services (e.g. Person Health Model Service)
• Governance Framework
– SOA Governance Framework and infrastructure
– Capability mapping built into registry/repository
– Portfolio governance and roadmap based on the SOA RA and OSIMM
The Enterprise SOA Technology Architecture...
The Journey - Mapping to the Technology SOA
Acme Organization has to align and derive its Technical SOA from the
SOA RA and the BT….
33

The Enabler: The SOA RA Meta-model
1 Kumar (2012)
34

• Overview
• The Business Perspective of Service Orientation
• Alignment
• Success Factors
• What’s Next
• Discussion
Agenda
35

• February, 2015
• Name Title
• Nikhil Kumar President & CEO
Co-Chair SOA Reference Architecture Project,
The Open Group
• Sundar Ramanathan Manager, IT Advisory
Project Chair SOA4BT Project,
The Open Group
ApTSi
TM
• Leadership
• World Class
Technology
• Experience
• Strategy
• Integration & SOA
• Application
Development &
Reuse
• DB, EII & BI
Nikhil Kumar President
Email: nikhil@ap-tech-solns.com
Blog: http://blogs.ittoolbox.com/emergingtech/nikhil
Phone: (248) 797 8143
Introductions
36
Sundar Ramanthan Manager
Email: sundararajan.ramanathan@ey.com
Blog http://sundarar1.wordpress.com
Phone: (734) 272-2040

• Overview
• The Business Perspective of Service Orientation
• Alignment
• Success Factors
• What’s Next
• Discussion
Agenda
37

The Enabler: The SOA RA V1
The SOA RA
The SOA RA provides a reusable set of capabilities, architectural
building blocks and an underlying framework to make SOA actionable
The SOA RA consists of 5
“functional” layers and 4 “cross-
cutting” layers
1. The SOA RA1 provides an industry standard
set of capabilities and architectural building
blocks for each layer, based on best
practices and lessons learned from a number
of global organizations of various sizes and
line of business
2. We use the business capabilities, industry
trends and drivers and best practices to
further constrain and define the capabilities to
be supported, and define solution
architectures
3. We use the OSIMM for Roadmapping
38

The Enabler: The SOA RA V1 also be applied to other
parts of the SOA Ecosystem, including the Cloud
The SOA RA and the Cloud Ecosystem
The Cloud is a particular expression of SOA. The SOA RA provides a
fundamental fabric around which we can design cloud architectures
1 TOG 2012, Kumar (2012, 2011)
39

The Enabler: The SOA RA can be used to derive
solution architectures1
Actionable Execution
The process of translation to an actionable asset is expressed through
the mapping of business capabilities and constraints to the creation of
an actionable SOA
1 Kumar (2012)
•Align
•Actionable
Bus
Cap.
•Map to RA
•Quantifiable
SOA
Cap.
TOG
provides
normative
and
prescriptive
set
ABB
•Map to
Soln. Arch
•Constraints
SBB
40

The Enabler: The SOA RA Metamodel
A Model
The metamodel provides for the realization of Solution Architectures
1 Kumar (2012), TOG (2011), Kumar & Arsanjani
41

• Here’s how you instantiate the SOA RA ….
• KPIs, NFRs and Business Capabilities help Constrain the RA
– They help to come to Architectural Decisions
– You pick Options based on these Constraints
– This helps Determine the required capabilities, ABBs and SBBs
Using It!1
•Align
•Actionable
Bus
Cap.
•Map to RA
•Quantifiable
SOA
Cap.
TOG
provides
normative
and
prescriptive
set
ABB
•Map to
Soln. Arch
•Constraints
SBB
1 Kumar (2012), Kumar & Arsanjani (2011/2012)
42

The Enabler: The SOA RA Metamodel
1 Kumar (2012)
43

1 Kumar (2012)
• The TOG SOA RA and OSIMM enable Roadmapping
– The OSIMM forms a rubric to assess conformance
– The RA provides the what and how
– Used together, you can plot how to evolve an RA and respond to change
Using It! Roadmapping
Business
Capabilities
• Align against
Business
Drivers
Technical
Capabilities
• The SOA RA
provides an
alignment to
ABBs and
Layers
Roadmap
• Express as
sets of
capabilities
• Aligned to
OSIMM
dimensions
Phase Execution
and Assessment
• Map SOA Cap
to RA ABBs
• Derive SBB
• Assess
against the
OSIMM
• Rebalance
and conduct
next phase of
Roadmap
44

The Enabler: The SOA RA Meta-model
1 Kumar (2012)
45

46
Overview: a world of SOAs
A slow but relentless revolution in which traditional technology management,
historically delivered only by an IT organization, is changing to be pervasive
technology use managed increasingly outside of IT’s direct control and
measured by boosting business results.
• Business Technology
The coalescing of the Business Ecosystems and SOA Ecosystems are
Business Technology real

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